The Indian railway system is often regarded as the foundation of the nation’s economy. Spanning thousands of kilometres, it ranks as the 4th largest railway network globally, following the US, China, and Russia. By the end of FY24, Indian Railways reported a total revenue of ₹2.40 lakh crore (approximately USD 28.75 billion).
There are several companies involved in the Indian railways sector that are contributing to the sector’s growth. In this article, check the best railway sector stocks in September 2024 in India, based on their 5-year CAGR.
| Name | Market Cap (₹ in crore) | PE Ratio | 5Y CAGR (%) | 1Y Return (%) |
| Jupiter Wagons Ltd | 23,718.83 | 71.54 | 109.03 | 54.16 |
| Titagarh Rail Systems Ltd | 20,123.63 | 70.33 | 107.39 | 90.57 |
| Rail Vikas Nigam Ltd | 1,20,118.00 | 76.30 | 86.48 | 354.16 |
| Ramkrishna Forgings Ltd | 17,120.40 | 50.14 | 72.84 | 43.90 |
| Texmaco Rail & Engineering Ltd | 7,898.69 | 69.77 | 42.0 | 65.48 |
| Oriental Rail Infrastructure Ltd | 1,976.83 | 65.85 | 40.60 | 388.76 |
| BEML Ltd | 16,137.45 | 57.27 | 37.97 | 78.17 |
| Indian Railway Catering and Tourism Corporation Ltd | 74,432 | 66.99 | – | 37.21 |
| Indian Railway Finance Corp Ltd | 2,36,343.93 | 36.86 | – | 271.36 |
| Railtel Corporation of India Ltd | 16,046.92 | 65.18 | – | 161.99 |
Note: The best railway stocks list provided here is as of August 28, 2024. The stocks are sorted based on the 5Y CAGR.
Jupiter Wagons is the premier manufacturer of railway wagons, components for passenger coaches, and alloy steel casting for rolling stack and track. In FY 2024, the company’s total income was ₹3,66,224.13 lakh, increased from ₹2,07,333.45 lakh in FY 2023. During the fiscal 2024, the profit was ₹33,279.50 lakh, up from ₹12,537.59 lakh in FY 2023.
Key metrics:
Titagarh Rail Systems specialises in developing advanced transportation solutions, including semi-high-speed trains, urban metros, passenger coaches, propulsion equipment, and a diverse range of wagons, including specialised types. In FY 2024, the company’s total income reached ₹3,89,897.21 lakh, up from ₹2,82,451.29 lakh in FY 2023. The profit for FY 2024 was ₹29,690.68 lakh, a significant increase from ₹10,336.64 lakh in FY 2023.
Key metrics:
Rail Vikas Nigam Ltd implements various types of Rail infrastructure projects assigned by MoR, including doubling, gauge conversion, new lines, railway electrification, major bridges, etc. In FY 2024, the company’s total income reached ₹23,074.80 crore, up from ₹21,278.01 crore in FY 2023. The profit for FY 2024 was ₹1,574.47 crore, an increase from ₹1,341.75 crore in FY 2023.
Key metrics:
Ramkrishna Forgings Ltd supplies world-class forged, machined, and fabricated products to diverse sectors like railways, farm equipment, mining and construction, power, oil and gas, power, and more. In FY 2024, the company’s total income reached ₹3,98,380.41 lakh, up from ₹3,19,685.19 lakh in FY 2023. The profit for FY 2024 was ₹34,143.52 lakh, an increase from ₹24,810.84 lakh in FY 2023.
Key metrics:
Texmaco Rail & Engineering Ltd manufactures a range of rolling stock, including wagons, coaches, EMUs, loco shells, and parts. The company also manufactures hydro mechanical equipment, steel castings, rail EPC, bridges, and other steel structures. In FY 2024, the company’s total income reached ₹3,57,241.72 lakh, up from ₹2,26,965.16 lakh in FY 2023. The net profit after tax for FY 2024 was ₹9,618.16 lakh, an increase from ₹1,153.22 lakh in FY 2023.
Key metrics:
By the end of FY24, Indian Railways achieved total revenue of ₹2.40 lakh crore (approximately USD 28.75 billion). The number of passengers increased by 52 crore, reaching 648 crore in FY 2023-24. For 2024-2025, the goal is to upgrade 40,000 conventional rail bogies to ‘Vande Bharat’ standards.
According to the Indian Railways 2023 report, the plan includes marketing semi-high-speed ‘Vande Bharat’ trains to European, South American, and East Asian markets by 2025-26, promoting ‘Made in India’ trains.
In the Budget 2024-25, the Ministry of Railways has been allocated a capital outlay of ₹2.52 lakh crore (USD 30.3 billion) to advance railway infrastructure. The government has also permitted 100% foreign direct investment (FDI) in the railway sector. Indian Railways has developed the National Rail Plan (NRP) for 2030 to modernise and enhance the railway system.
The Indian railway sector is a vital component of the nation’s infrastructure, significantly contributing to economic growth and regional connectivity. Companies within this sector play a key role in its development. However, before investing, it is important to consider your investment objectives and risk tolerance. Conduct a thorough evaluation of the companies involved to make informed decisions.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Aug 28, 2024, 4:10 PM IST
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